NOV Inc. (NOV)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		4.51	4.16	4.18	4.78	4.57
DSO	days	81.01	87.71	87.29	76.36	79.85

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.51
= 81.01

To analyze NOV Inc's days of sales outstanding (DSO) for the past five years:

1. The DSO measures how many days, on average, it takes for a company to collect its accounts receivable. A lower DSO indicates that the company is collecting its receivables more quickly, which could be a positive sign of efficient cash flow management.

2. NOV Inc's DSO has fluctuated over the past five years, ranging from 76.36 days in 2020 to 87.71 days in 2022. The DSO decreased to 81.01 days in 2023, suggesting an improvement in collecting receivables compared to the previous year.

3. A trend analysis reveals that NOV Inc's DSO was relatively stable from 2019 to 2021, hovering around 80-87 days. The slight decrease in 2023 could be a positive sign, indicating potential improvements in the company's accounts receivable management.

4. Comparing NOV Inc's DSO to industry benchmarks or historical data can provide further insights into the company's efficiency in managing receivables. It is essential to assess whether the DSO is in line with industry standards and if any significant deviations warrant further investigation.

5. Overall, while NOV Inc's DSO has shown fluctuations over the past five years, the recent decrease in 2023 could indicate progress in collecting receivables more efficiently. Continued monitoring of DSO trends and comparisons with industry peers can help assess the company's financial health and performance in managing its accounts receivable.